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Career Description

Analyze credit data and financial statements of individuals or firms to determine the degree of risk involved in extending credit or lending money. Prepare reports with credit information for use in decision making.

What Job Titles Credit Analysts Might Have

• Analyst
• Credit Analyst
• Credit Manager
• Underwriter

What Credit Analysts Do

• Analyze credit data and financial statements to determine the degree of risk involved in extending credit or lending money.
• Generate financial ratios, using computer programs, to evaluate customers' financial status.
• Consult with customers to resolve complaints and verify financial and credit transactions.
• Prepare reports that include the degree of risk involved in extending credit or lending money.
• Compare liquidity, profitability, and credit histories of establishments being evaluated with those of similar establishments in the same industries and geographic locations.
• Review individual or commercial customer files to identify and select delinquent accounts for collection.
• Confer with credit association and other business representatives to exchange credit information.
• Complete loan applications, including credit analyses and summaries of loan requests, and submit to loan committees for approval.
• Analyze financial data such as income growth, quality of management, and market share to determine expected profitability of loans.
• Evaluate customer records and recommend payment plans based on earnings, savings data, payment history, and purchase activity.

What Credit Analysts Should Be Good At

• Problem Sensitivity - The ability to tell when something is wrong or is likely to go wrong. It does not involve solving the problem, only recognizing there is a problem.
• Mathematical Reasoning - The ability to choose the right mathematical methods or formulas to solve a problem.
• Oral Comprehension - The ability to listen to and understand information and ideas presented through spoken words and sentences.
• Oral Expression - The ability to communicate information and ideas in speaking so others will understand.
• Deductive Reasoning - The ability to apply general rules to specific problems to produce answers that make sense.
• Inductive Reasoning - The ability to combine pieces of information to form general rules or conclusions (includes finding a relationship among seemingly unrelated events).
• Written Comprehension - The ability to read and understand information and ideas presented in writing.
• Information Ordering - The ability to arrange things or actions in a certain order or pattern according to a specific rule or set of rules (e.g., patterns of numbers, letters, words, pictures, mathematical operations).
• Near Vision - The ability to see details at close range (within a few feet of the observer).

What Credit Analysts Should Be Interested In

• Conventional - Conventional occupations frequently involve following set procedures and routines. These occupations can include working with data and details more than with ideas. Usually there is a clear line of authority to follow.
• Enterprising - Enterprising occupations frequently involve starting up and carrying out projects. These occupations can involve leading people and making many decisions. Sometimes they require risk taking and often deal with business.

What Credit Analysts Need to Learn

• Economics and Accounting - Knowledge of economic and accounting principles and practices, the financial markets, banking and the analysis and reporting of financial data.
• English Language - Knowledge of the structure and content of the English language including the meaning and spelling of words, rules of composition, and grammar.
• Mathematics - Knowledge of arithmetic, algebra, geometry, calculus, statistics, and their applications.
• Customer and Personal Service - Knowledge of principles and processes for providing customer and personal services. This includes customer needs assessment, meeting quality standards for services, and evaluation of customer satisfaction.
• Clerical - Knowledge of administrative and clerical procedures and systems such as word processing, managing files and records, stenography and transcription, designing forms, and other office procedures and terminology.